SOLAR MARKET
in INDONESIA
By Carlos Rosas
Agenda
 Indonesia
 Energy
Market
 Solar Market
 Grid Parity
 Example
Indonesia
Location: 6.175 S, 106.83 E
Territory: 1,919,440 km2 (15th)
Population: 237,560,000 (4th;2011;
tradingeconomics.com)
Rural: 111,060,243 (47%;2010)
Access to Electricity: 64,5%
GDP/capita: 1148 $ (144th,2008;122nd)
Poverty: 2007 17,8%  2011 = 12,5%
Unemployment rate: 6,3% (11,2%;2006)
Inflation: 4,5%(7%;2010)
Currency: 1€ <> 11643Rp (2012)
http://data.worldbank.org/country/indonesia
Energy Market
PLN (86%) 26,9 GW by 2012 (including subsidiaries) (www.pln.co.id/)
Own rights for transmission and distribution
Law (1985, 2002, 2004, 2009)
 Third Generation IPP
2009 (Removed PLN from total power decision, IPPs can satisfy unserved areas and are
allowed to sell to public directly, however not connected to public transmission, tariff are
not controlled by PLN anymore, tariff no longer uniform throughout country)
Gov. share risk with PLN
“BKPM” The Investment Coordinating Board (centralized projects electricity)
“The Ministry of Finance” Tax incentives through Gov. electricity project and guarantees.
“APLSI, The Independent Power Producers Association” Facilitate communication to Gov.
“PPP, Public Private Partnership” Collaboration of private efficiency to reap better value for
public.
“PT PII, Indonesian Infrastructure Guarantee Fund” Reduce financial cost for investors
and/by guarantees (Burocracy, project performance, legislation changes)
 Bidding process for tariff and approval
 For renewables: Arrangements (Certain price and time for renewables)

Ref: http://www.pwc.com/id/en
Source of Energy
Oil
Coal
Gas
RE (Hydro, Geothermal, Wind, PV)

Four main sectors
of energy users
Household
11,4 %
Commercial
3,7 %
Industrial
44,2 %
Transportation 40,6 %

Ref : www.energyefficiencyindonesia.info/energy/indonesia
46,93 %
26,4 % (2nd in 2008 exporters)
21,9 % (14th)
4,8 %
Solar Market



Installed 14MW (2011;mostly SHS & utility-scale plants)
Radiation: 4,8 kWh/m2/day (Germany 2,73 from NASA)
17,000 small/remote islands with bad electricity connection and
many rural villages and thousands of 35,5 % No access to Electricity
(41.573.000 people)
Half of Potential clients than Bangladesh
Statistics
Average 2009
Indonesia Produces
http://www05.abb.com/ ; 2011
Whole Indonesia Consumed
Households Consumes
Energy Demand Needed Whole Population
Households that Need Electricity
So Far SHS n Utility SOLAR
% Produced relative With Already installed System
Future install capacity
Projects 1MW
2012 Biggest Power Plant Charanka Park, India. (http://www.pvresources.com/)
…
64,5% ONLY Rural Areas
Possible Market
570,00
150,00
104,06
14,57
22,59
7,79
14
0,26
5,48
> 5000
214
39,41
4,93
kWh/capita
TWh/years
TWh/years
TWh/years
TWh/years
TWh
MW
%
GW
MW
Millions People
Millions SHS
Grid Parity
By PLN 2009
Residential average (Low V): 13,9 €cts/kwh
Up to 10MW any renewable energy
Contracts 15 years (Not clear)
http://thinkrenewables.wordpress.com/2010/04/30/md-no-31-2009-feed-in-tariff-for-up-to-10-mw-capacity/
If price @ 1€/ wp system cost.
7 years ROI at 8% (5,8% Interest Rate Central Bank Republic of Indonesia)
FROM NREL (LCOE) Online Calculator
15 years, Interest of 8%, O&M fixed cost of 3 %, Capacity Factor 17%
@ 1000 €/ wp 10,1 €cts/kWh
@ 2000 €/ wp 19.9 €cts/kWh
@ 2400 €/ wp 29.8 €cts/kWh (Sharp in Bali @ March 2, signed MoU. 300milion$
100MW) thejakartapost.com
18,34 €cts/kWh (Half price of Fuel energy (No price of selling to PLN have been set)
Example





http://www.giz.de/Themen/de/SID-66498112-72C70C43/dokumente/2012-de-stojiljkovic2-pep-informationswork-indonesiensolar.pdf
Grameen Shakti started ‘96 with SHS
reached 600 thousands SHS : Plan 1 million by 2015
Solid structure of management company
++ organizations involved to develop renewable energy.
University of Singapore (Report of Governance small-scale renewable energy in Asia)
Indonesia Solar Loan Programme (oct2010 - dec2011)
Technology

Rural Electricity condition in Indonesia (By UNEP/SoF REPORT)
Indonesian Population: 237 million (2011 estimate)
Villages: 66 thousand
Electrified Villages: 78% or 51,000
Non-electrified Villages: 22% or 15,000
No of Households: 38,5 million
Electrification ration: 53% or 20.4 million households
Non-electrified Households: 47% or 18.1 million households
Support programme to help develop a competitive credit market for
Solar Energy
UNEP With GermanGO help of Frankfurt school of finance
Aim Help to reduce risk therefore cost and to jointly partner together FI’s and SET’s
38 pilot projects
PT. Azet Syrua Lestari with sustainable business
No experience with Solar PV project finance or Solar PV technology
PLN adopted also that program. 140 millions $  25MW (1 year ending 2012)
Now plan installing over 1000 island by 2020
Rendev (NGO, aims: alleviate poverty through development of microfinance)
Synergies between MFI, promote development in solar market.
GOI With Technical, institutional and financial issues development in Indonesia study
Plan 2025 95% rural villages will be electrified.
RENDEV “Intelligent Energy
Europe” 2007 - 09
All for Solar projects
http://www.rendev.org/docs/resources/reports/RENDEV_WP5_%20D14_MFIS_Indonesia_ap09.pdf